India and China Signed MoUs to Address Concerns on Trade Deficit
India and China on 20 May 2013 signed three MoUs on buffalo meat, fisheries and pharmaceuticals and one agreement on feed and feed ingredients.
India and China on 20 May 2013 signed three Memorandum of Understandings (MoUs) on buffalo meat, fisheries and pharmaceuticals and one agreement on feed and feed ingredients during the visit of the Premier of the State Council of the People’s Republic of China, Li Keqiang to India.
The MoUs is supposed to deal with the growing trade deficit between the two countries. It is worth mentioning here that the trade deficit has increased from 1.08 billion US Dollars in 2001-02 to 40.77 billion US Dollars in 2012-13.
The resumption of exporting buffalo meat from India to China, will bring a big merchandise trade that will not only be helpful in reducing trade imbalance of India but also in China’s food security by providing quality and hygiene meat products. Earlier the export of buffalo meat is not allowed from India to China due to concerns about Foot & Mouth Disease. It was a long pending issue between two countries.
The Other Mou was signed for import and export trade of fishery products which aims to bring cooperation in promoting trade of fishery products and healthy development of trade between India and China.
Another MoU was also signed between Pharmaceuticals Export Promotion Council of India (Pharmexcil) and the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE) which will facilitate access to the China market in pharmaceuticals. The average imports of medicinal and pharmaceutical products from China during last five years were 4332.37 million US dollars vis-à-vis exports from India of 692.44 million US dollars.
An important agreement was signed between Export Inspection Council of India (EIC) and AQSIQ on trade and safety of feed and feed ingredients which is supposed to bring big merchandise trade for feed & feed ingredients after the resumption of trade as China has suspended import of feed and feed ingredients since 1 January 2012.
Both the countries also agreed to conduct the Kailash-Mansarovar Yatra every year between May and September.